Questions tagged [ipo]

For personal finance questions related to a company's Initial Public Offering (IPO).

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10
votes
3answers
3k views

How do companies get money from being listed publicly? [duplicate]

How do companies get their money from being on the stock market? I understand the reason a company will list is to raise capital. Who gives them this money? The stock market is between buyers and ...
2
votes
0answers
117 views

How can a single unit of a business be worth more than its entire market cap?

As of today, June 26th 2019, Thyssenkrupp AG has a market cap of approximately 7.3 billion euros. On May 10th 2019, Thyssenkrupp AG announced that it will take its elevator business public in an IPO. ...
0
votes
1answer
34 views

Are shares from a direct listing available as soon as markets open?

I’ve noticed in conventional IPOs that some companies’ trading data doesn’t start showing up until the early afternoon on the day they go public. Looking back at Zoom (ZM) for example I’m now able to ...
0
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0answers
23 views

Are IPO lockup shares counted when calculating eps?

For example, Company XYZ has an IPO on January 1st They offer 10 million shares 90 million shares are still held by insiders The lockup lasts until June 1st They report earnings of $100m for Q1 on ...
0
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1answer
49 views

SEC institutional pre-IPO disclosure

All funds/managers with assets above 100M need to file their holdings with the SEC in the form of a 13F. like this one for example : https://sec.report/Document/0001567619-19-011051 There is a column ...
-1
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1answer
135 views

Buy pre ipo'd start up company stock in small amount? [closed]

Is there any investment website/company through which I can buy small amounts of pre-PIOed company stock in a smaller amount? Most require $100K worth of investment. e.g. as an average investor can ...
3
votes
2answers
296 views

Can an IPO be cancelled if not successful?

Let's say the Company C goes public using a Fixed Price Offering. It emits 10000 shares at 10 euros per share. What happens if investors only subscribe to, let's say, 789 shares. That gives a ...
4
votes
1answer
116 views

How can I establish myself to be an “accredited investor” relative to an IPO?

A US company with which I have an affiliation (I'm not an employee; I don't think the specifics of our relationship are relevant here) is preparing an IPO and there is a directed share program for a ...
1
vote
1answer
207 views

What happens on the NYSE during an IPO such that the first trade may take hours after the opening bell?

So, I understand that today's Spotify IPO isn't a traditional IPO. But I think my question extends beyond this. At about 12:45pm today, shares of Spotify finally started trading on NYSE. Opening bell ...
5
votes
1answer
518 views

If I earn RSUs in a private company while living in California, and am no longer employed with the company at IPO, do I owe California taxes?

I'm employed at a private company in San Francisco. Part of my compensation is in RSUs, which are subject to the standard two vesting conditions for startup company stock: time, and the occurrence of ...
3
votes
1answer
157 views

How to buy an IPO?

how does one buy an IPO? Are these only for institutional investors? For example Dropbox IPO'd at $21, yet I don't think I had the opportunity to purchase at this rate. I can buy on the stock exchange ...
1
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0answers
52 views

What percent of first post-IPO earnings reports are disappointing?

It seems like every time a company has its IPO, the next earnings report fails to meet expectations and the stock price plummets. Shouldn't expectations be lower considering the frequency at which ...
0
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2answers
113 views

Precedent and models for 100% equity available via initial offering?

In consideration of the most ethical distribution of shares for a startup business (via a public, initial investment event ie- IPO, ICO, or 'crowd-equity-fundraiser') the following occurred to me. ...
0
votes
1answer
69 views

What is the meaning of public stock price data from before the official first day of trading? [duplicate]

I have noticed that some companies, in the weeks prior to a first listing day or IPO, have share prices listed. This often seems to happen before a spinoff, such as in Xylem's (XYL) 2011 spinoff from ...
1
vote
1answer
218 views

Why do some services list an IPO date that is well after historical price data you can find elsewhere?

The IPO date I find for the MMM Corporation is 1/13/1978 (http://www.crunchbase.com/ipo/3m-ipo--e0c82f24). Google Finance has price data going back to that date (http://finance.google.com/finance?q=...
1
vote
1answer
873 views

Is Volvo a public company?

I am wondering whether Volvo is a public company. Seemingly Volvo is traded (and has been for years): https://finance.yahoo.com/quote/VOLV-B.ST?ltr=1 But a lot of articles are talking about a ...
2
votes
1answer
846 views

What Happens to Cofounders' Shares when they IPO?

When a company starts off, 100% of shares are owned by cofounders. By the time a company is considering IPO, the shares are owned like 70% by cofounders and 30% by options-holders (like employees) (I ...
3
votes
1answer
133 views

What does it mean for issuing corporations to “crank out expensive shares when markets are frothy … and issue debt when markets are cheap”?

Can someone explain this excerpt from William Bernstein's article "The $100 Billion Oxymoron": But don't feel too sorry for issuing corporations, they are past-masters at cranking out expensive ...
0
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1answer
501 views

Share price increase around the end of the “quiet period” vs. the “IPO lock up period”?

As explained here, the IPO lock up period is ...a period of time after a company has initially gone public, usually between 90 to 180 days. During these initial days of trading, company ...
-3
votes
1answer
725 views

How does a public company turn shares into cash?

Once a company starts trading publicly, how do they turn shares into cash that they can then use to grow their business? From what I've read so far, it seems that pre-IPO an investment bank ...
7
votes
1answer
801 views

what's the difference between money raised in an ipo and its valuation?

I see news that says "company X wants to raise 3 million dollars at a valuation of 25 million dollars". How does the company get this 3 million? And is the valuation determined in part by how much ...
0
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1answer
167 views

Selling shares after company does IPO

Let's say a co-founder who worked (but no longer does) for a company prior to it going public still owns 1% (100,000 shares of 10,000,000 total) of the company. If the company does an IPO and offers ...
1
vote
1answer
138 views

Why public companies care how their stock price fluctuates? [duplicate]

After IPO, the socks are traded between 3rd parties (let's assume the company's employees don't own shares), so why should the company care what's their (perceived) value on the market? After the IPO, ...
1
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1answer
444 views

How is initial stock price (IPO) of a stock determined

Stock price = Company value / Amount of stocks Who determines company value at IPO? As I understand It is determined by the owner? Or external experts?
0
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1answer
334 views

Why a company files multiple S-1 (IPO)

I have noticed companies file multiple s-1 and s-1/a What is the difference between s-1 and s-1/a when both are being used to file IPO. And why a company files multiple s-1 / s-1/a forms. Isn't that ...
10
votes
3answers
5k views

Must a company have a specific number of employees to do an IPO?

I'm interested in a job offering from a company that is going for an IPO (Initial Public Offering) in the next 6 months. It is rumored that once the IPO is done they will lay off a lot of employees ...
3
votes
1answer
318 views

How to bet against IPOs?

Suppose one expects that IPOs, on the whole, show poor performance following the IPO (especially if one buys at the IPO), and wishes to bet against them. This can be done by simply shorting every IPO ...
1
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2answers
202 views

If a company has already IPO'ed and sold its shares, what is the incentive to keep making money? [closed]

If a company has already 'exited' with an IPO and sold its shares, what is the incentive to keep making money?
2
votes
2answers
765 views

When is an IPO considered failure? [closed]

I am reading case of Air Berlin IPO. It has detail that investors where unhappy as the operating profit was less and company's strategy was not aligned to increase profit. But why did knowing ...
1
vote
4answers
236 views

Why should a company go public?

For someone who holds stock in a privately held startup (through exercised employee options) is it preferable to see the company aiming to go public so that stock can be sold on the open market? It ...
0
votes
1answer
48 views

What numbers to look for investment returns

I'm exploring the field of investments and would like to know roughly what numbers and estimates have to be looked at for a company that is going to become public soon. For instance, if I buy 10% of ...
4
votes
1answer
423 views

Where to find CSV or JSON data for publicly traded companies listed with their IPO date?

I found some of this data on Nasdaq's website, but a third of the IPO dates were listed as "n/a".
0
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2answers
568 views

Determine share price from S-1 for company that was bought before going public

I would like to determine (roughly) the value of an individual share of common stock based on S-1 (Pre-IPO) filing for a private corp that was acquired instead of going public. The company sale price ...
3
votes
1answer
168 views

When after a companys IPO date can I purchase shares?

There recently was an IPO, and when I tried to buy shares that day Scottrade prompted me with: Error: Unable to enter the order because the symbol entered is not a Listed or Nasdaq National ...
6
votes
1answer
2k views

Implications of a Canadian company IPO having a dual TSX/NYSE stock listing?

As an exampe, Shopify will go public this upcoming May 26th, selling shares both on the TSX and the NYSE. What are some of the main implications of this dual IPO, other than the fact that the ...
-2
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1answer
56 views

Where can I find the source of this shareholder-detail-table image?

I am reading some news online and found an image in one post. I'd like to know where is the source. It looks like a website. Thanks,
6
votes
4answers
476 views

Buying shares in employer's company during IPO

So the company that I work for has just put out an IPO to float on the share market. They have offered employee's the opportunity to purchase reserved shares before the offer goes public, up to $10 ...
1
vote
1answer
519 views

should the Market Capitalization be equal to the Equity of the firm

I am new in finance and I was wondering the following probably stupid questions that I don't seem to find answer anywhere. When the owner of a firm decides to make its firm public should the Market ...
4
votes
2answers
968 views

How are stocks in an IPO allocated to investors

Example: the VRL Logistics IPO was subscribed 74x, how is it decided who gets shares and who doesnt? This is assuming the number of those who applied at the highest price point is still greater than ...
2
votes
1answer
2k views

How does a company get money by going public in an IPO?

If a company goes public, how does it get the money? Will the underwriter pay the company once it goes for initial public offering (IPO)? Does that have anything to do with the valuation? Say a ...
2
votes
1answer
137 views

Any reason to invest in a mutual fund at launch?

Hargreaves are launching a new UK growth fund next week. Is there any particular reason to get in at the start? I figure it's not like an IPO? The fund value is based on performance, right, not ...
2
votes
4answers
15k views

How much of a company goes public?

When a company goes public, does that mean that it is 100% public? I just saw this infographic. And after I saw the last pie divided I wondered if companies are actually give only a percentage of the ...
0
votes
1answer
55 views

Shareholder in US based company

I am completely blind regarding this stocks and shares. So here is my situation. My brother is working in US. He is going to start an IT company there. I will be a partner. He said he will write 20% ...
1
vote
1answer
740 views

What happens to internal stock when a company goes public?

If you hold stock in a company that is not publicly traded, what will happen to that stock if the company becomes publicly traded?
4
votes
2answers
149 views

Who are the sellers for the new public stocks?

There are lots of news for $BABA. It's current price as shown in the market is $68 but my broker put an announcement saying that its limit price is already $85. Then who are the sellers? The company ...
0
votes
1answer
311 views

Can I buy stock of a company that just IPO

I'm a college student, and I wonder if I can buy stock from a company right after it finishes its IPO? To be more specific, I'm interested in the IPO of Alibaba, which hasn't happen yet. If I am not ...
5
votes
1answer
2k views

Can I buy IPO stock during the pre-market trading on the day of IPO?

Is it possible to buy a company's stock from 8 am to 9:30 am on the day of the company's IPO using an online brokerage that is? Or does the IPO stock only become available when the market opens at 9:...
0
votes
2answers
1k views

What does investment bank risk during IPO?

During IPO investment bank buys first stock of company which goes public. But what are the risks for bank? If after the IPO nobody buys these stocks from the bank on stock market, how will it get its ...
3
votes
1answer
976 views

Do post-IPO 'insider' stock lockup periods still apply if you separate from the company

Typically employees and other 'insiders' are subject to a lockup period after an initial public offering, along with blackout periods at certain points throughout the year to curb insider trading. ...
3
votes
1answer
293 views

Differences in conditions on shares to private vs. public shareholders?

The Wikipedia page about IPOs says this: A company selling shares is never required to repay the capital to its public investors. Does that mean that stocks bought on the stock market are somehow ...